Tag: Performance

Posted on October 28, 2019

Betterment and Wealthfront—the pioneers of the robo-advice industry—are the two largest independent advisors today. Both were founded a decade ago and have helped bring a revolution to the financial advice industry by making professional money management available to and affordable for everyone. We break out the differences between the two to see which one is better for you. Our performance figures are accurate and based on real accounts that we have open with both providers. 

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Posted on September 10, 2019

Top Performers*:

1-Year Trailing Top Performers

  • Fidelity Go IRA – 6.55%
  • TD Ameritrade IRA – 5.87%
  • WiseBanyan IRA – 5.61%

2-Year Trailing Top Performers

  • Fidelity Go IRA – 8.25%
  • WiseBanyan IRA – 8.07%
  • TD Ameritrade IRA – 7.45%

*Based on Total Portfolio Return above/below Normalized Benchmark

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Posted on September 8, 2019

As existing firms have grown and new players have entered an increasingly crowded field, companies have looked for new ways to differentiate themselves. For some companies that means offering “active” portfolios. Although Backend Benchmarking has only had our active accounts opened for a short time, active portfolios have showed some early signs of outperformance.  Active portfolios outperformed their passive counterparts in the first six months of 2019 by 1.17% on average. One significant factor that may be driving this short period of outperformance is many of our active portfolios have a tilt towards growth which has outperformed in the first 6 months of 2019.

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Posted on September 6, 2019

In recent years, socially responsible investing (SRI) – also commonly categorized as environmental, social, and governance investing (ESG) – has gained popularity with retail investors and investment managers alike.  Between 2016 and 2018, assets invested in ESG-themed mutual funds grew 34%, while assets in ESG-themed ETF funds more than doubled. Driven by consumer demand, a natural expansion has been undertaken by digital advisors to offer separate SRI portfolio options.  Within the past few years we have opened and funded SRI accounts at each of the providers that offer sustainable investing options. With a year of performance to review, we have assessed the risk and return statistics of SRI portfolios offered compared to their standard offerings.  While today’s focus is on performance, we will publish a full report on the composition of SRI portfolios, including costs and sustainability scores, later this month.

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Posted on September 5, 2019

Winner: Fidelity Go
Runner-Up: WiseBanyan

We awarded the Best Robo for Performance at a Low Cost to the top-performing robos over the prior two-year period: Fidelity Go and WiseBanyan.  

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Posted on June 14, 2018

Included in The Robo Report’s quarterly report on the digital advice industry is performance data on real accounts opened by BackEnd Benchmarking. Providing performance data allows for comparison across different digital advice platforms and helps investors make informed decisions when selecting a robo-advice product.

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